Simulates personal accounts over time.    Model based on the  Sustainable Money System . For a short introduction, read this  short article  or watch the  TEDx talk .
Simulates personal accounts over time.

Model based on the Sustainable Money System.
For a short introduction, read this short article or watch the TEDx talk.
8 6 months ago
  Simulation of the effect of a basic income on rental prices based on the assumption people are only willing to spend a certain percentage of their income on rent.
Simulation of the effect of a basic income on rental prices based on the assumption people are only willing to spend a certain percentage of their income on rent.
A detailed description of all model input parameters is available  here . These are discussed further  here  and  here .  Update 14 December 2015 (v2.5): correction to net output basis LCOE calculation, to include actual self power demand for wind, PV and batteries in place of "2015 reference" value
A detailed description of all model input parameters is available here. These are discussed further here and here.

Update 14 December 2015 (v2.5): correction to net output basis LCOE calculation, to include actual self power demand for wind, PV and batteries in place of "2015 reference" values.

Update 20 November 2015 (v2.4): levelised O&M costs now added for wind & PV, so that complete (less transmission-related investments) LCOE for wind and PV is calculated, for both gross and net output.

Update 18 November 2015 (v2.3: development of capital cost estimates for wind, PV and battery buffering, adding levelised capital cost per unit net output, for comparison with levelised capital cost per unit gross output. Levelised capital cost estimate has been substantially refined, bringing this into line with standard practice for capital recovery calculation. Discount rate is user adjustable.

Default maximum autonomy periods reduced to 48 hours for wind and 72 hours for PV.

Update 22 October 2015 (v2.2): added ramped introduction of wind and PV buffering capacity. Wind and PV buffering ramps from zero to the maximum autonomy period as wind and PV generated electricity increases as a proportion of overall electricity supply. The threshold proportion for maximum autonomy period is user adjustable. Ramping uses interpolation based on an elliptical curve between zero and the threshold proportion, to avoid discontinuities that produce poor response shape in key variables.

Update 23 September 2015 (v2.1): added capital investment calculation and associated LCOE contribution for wind generation plant, PV generation plant and storage batteries.

**This version (v2.0) includes refined energy conversion efficiency estimates, increasing the global mean efficiency, but also reducing the aggressiveness of the self-demand learning curves for all sources. The basis for the conversion efficiencies, including all assumptions relating to specific types of work & heat used by the economy, is provided in this Excel spreadsheet.

Conversion of self power demand to energy services demand for each source is carried out via a reference global mean conversion efficiency, set as a user input using the global mean conversion efficiency calculated in the model at the time of transition commencement (taken to be the time for which all EROI parameter values are defined. A learning curve is applied to this value to account for future improvement in self power demand to services conversion efficiency.**

The original "standard run" version of the model is available here.
This is a simulation of monetary flows for a business that uses  Circular Money . All numbers represent 1000's of dollars. So a revenue of 3 means a revenue of $3000.  Revenues and expenses are monthly.
This is a simulation of monetary flows for a business that uses Circular Money.
All numbers represent 1000's of dollars. So a revenue of 3 means a revenue of $3000.
Revenues and expenses are monthly.
 This is the original model version (v1.0) with default "standard run" parameter set: see detailed commentary  here  and  here . As of 2 September 2015, ongoing development has now shifted to  this version  of the model.   The significance of reduced energy return on energy invested (EROI) in the tr
This is the original model version (v1.0) with default "standard run" parameter set: see detailed commentary here and here. As of 2 September 2015, ongoing development has now shifted to this version of the model.

The significance of reduced energy return on energy invested (EROI) in the transition from fossil fuel to renewable primary energy sources is often disputed by both renewable energy proponents and mainstream economists.​ This model illustrates the impact of EROI in large-scale energy transition using a system dynamics approach. The variables of primary interest here are: 1) net energy available to "the rest of the economy" as renewable penetration increases [Total final energy services out to the economy]; and 2) the size of the energy sector as a proportion of overall economic activity, treating energy use as a very rough proxy for size [Energy services ratio].
This model aggregates energy supply in the form of fuels and electricity as a single variable, total final energy services, and treats the global economy as a single closed system.
The model includes all major incumbent energy sources, and assumes a transition to wind, PV, hydro and nuclear generated electricity, plus biomass electricity and fuels. Hydro, biomass and nuclear growth rates are built into the model from the outset, and wind and PV emplacement rates respond to the built-in retirement rates for fossil energy sources, by attempting to make up the difference between the historical maximum total energy services out to the global economy, and the current total energy services out. Intermittency of PV and wind are compensated via Li-ion battery storage. Note, however, that seasonal variation of PV is not fully addressed i.e. PV is modeled using annual and global average parameters. For this to have anything close to real world validity, this would require that all PV capacity is located in highly favourable locations in terms of annual average insolation, and that energy is distributed from these regions to points of end use. The necessary distribution infrastructure is not included in the model at this stage.
It is possible to explore the effect of seasonal variation with PV assumed to be distributed more widely by de-rating capacity factor and increasing the autonomy period for storage.

This version of the model takes values for emplaced capacities of conventional sources (i.e. all energy sources except wind and PV) as exogenous inputs, based on data generated from earlier endogenously-generated emplaced capacities (for which emplacement rates as a proportion of existing installed capacity were the primary exogenous input).
The statement that there can be no economic activity
without  energy and that fossil fuels are
finite contrasts with the fact that money is not finite and can be created by governments
via their central banks at zero marginal cost whenever needed.

 An important fact about COAL, GAS and OIL (especia
The statement that there can be no economic activity without  energy and that fossil fuels are finite contrasts with the fact that money is not finite and can be created by governments via their central banks at zero marginal cost whenever needed.

An important fact about COAL, GAS and OIL (especially when produced via fracking) is that their net energy ratios are falling rapidly. In other words the energy needed to extract a given quantity of fossil fuels is constantly increasing. The falling ratio 'EROI' (Energy Return on Energy Invested ) provides yet another warning that we can no longer rely on fossil fuels to power our economies. In 1940 it took the energy of only one barrel of oil to extract 100. Today the energy of 1 barrel of oil will yield only 15. We cannot wait until the ratio falls to 1/1 before we invest seriously in alternative sources of energy, because by then industrial society as we know it doday will have ceased to exist. An EROI of 1:1 means that it takes the energy of one barrel of oil to extract one barrel of oil - oil production would simply stop! 


Neoliberalism
uses a deceptive narrative to declare that money the government spends into the economy in excesses of the taxes it collects creates a ‘government debt’.
In fact, the money the government spends into the economy in excess of the
taxes is an income, a benefit for the private sector. Whe
Neoliberalism uses a deceptive narrative to declare that money the government spends into the economy in excesses of the taxes it collects creates a ‘government debt’. In fact, the money the government spends into the economy in excess of the taxes is an income, a benefit for the private sector. When the government issues bonds, the money the private sector uses to buy them via banks comes from a residual cushion of dollars that the government already spent into the economy but has not yet taxed back.  If this were not the case, if the government had taxed back all the money it spent into the economy, then the economy could not function. There would be no dollars in the economy, since the government is the sole supplier of U.S. dollars! In the doted rectangle in the graph you can see that the dollars paid to the government for bonds sits in a dollar asset account. When the government issues bonds it simply provides the public and institutions with a desirable money substitute that pays interest i.e. Treasury bonds. It is a swap of one kind of financial asset for another. To register this swap the government debits the dollar asset account and credits the bond account.  When the time comes to redeem (take back) the bonds, all the government does is revers the swap, and that’s all!  When you look at the total amount of finacial assets in the private sector,  these remain constant at $ 25 BN  after the payment of $ 5 BN taxes. This implies that  no lending of financial assets of the private sector to the government has taken place during the swap operation. The money was always there. The debt mountain is an illusion!
 Simulates total money mass over time. An aggregate of all demurrage free buffers is used to calculate demurrage fees. The total amount of demurrage free money in the system can never exceed the number of users multiplied with the size of the demurrage free buffer.    Model based on the  Sustainable
Simulates total money mass over time. An aggregate of all demurrage free buffers is used to calculate demurrage fees. The total amount of demurrage free money in the system can never exceed the number of users multiplied with the size of the demurrage free buffer.

Model based on the Sustainable Money System.
For a short introduction, read this short article of watch the TEDx talk.
This model describes the influences different taxes have on the behaviour in our society
This model describes the influences different taxes have on the behaviour in our society
 Economic growth cannot go on forever, although politicians and most economist
seem to think so. The activity involved in economic growth necessarily  generates entropy (disorder and environmental degradation). Entorpy in turn generates powerful negative feedback loops which will, as
a response from

Economic growth cannot go on forever, although politicians and most economist seem to think so. The activity involved in economic growth necessarily  generates entropy (disorder and environmental degradation). Entorpy in turn generates powerful negative feedback loops which will, as a response from nature, ensure that economic activity will eventually grind to a complete halt.  In these circumstances organised society cannot persist and will collapse. The negative feedback loops shown in this graph have already started to operate. The longer economic growth continues unabated, the more powerful these negative feedback loops will become. How long can economic growth continue before it is overwhelmed? It may not be very far in the future.

 Model supporting research of investment vs. austerity implications. Please refer to  Modern Money & Public Purpose Video .  @ LinkedIn ,  Twitter ,  YouTube

Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.

@LinkedInTwitterYouTube

'Efficiencyism’  can be described as a blind belief in the effectiveness
of efficiency measures without taking into account circumstances and the wider context.   The
graph on the left shows how the frequent use of the term 'efficiency' at the level of local interactons can lead to the emergence of
'Efficiencyism’  can be described as a blind belief in the effectiveness of efficiency measures without taking into account circumstances and the wider context.   The graph on the left shows how the frequent use of the term 'efficiency' at the level of local interactons can lead to the emergence of  'efficiencyism' through upward causation, denoted by the arrows pointing upwards.  However, there is also downward causation from the global level depicted by the red arrows which can increase the blind application of efficiency measures at the local level. In other words, efficiency for the sake of efficiency becomes a dominant idea.  The tyrannical influence of 'eficiencyism' affects all of us to varying degrees and unfortunately can often have very negative side effects, such as an increase in unemployment, social injustice and even increase inequality.  Of  course, well-thought-out efficiency improvements can also bring great  benefits.   I recommend reading an excellent article by Dr. Charles Chandler, who explains the term 'efficiencyism' with some excellent examples and also points to some  of its undesirable effects.

http://www.ageofoe.com/010-efficiencyism-holds-us-back/

A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy.  Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover       Assumptions   Govt policy reduces infection and
A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy.  Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover

Assumptions
Govt policy reduces infection and economic growth in the same way.

Govt policy is trigger when reported COVID-19 case are 10 or less.

A greater number of COVID-19 cases has a negative effect on the economy.  This is due to economic signalling that all is not well.

Interesting insights

Higher testing rates seem to trigger more rapid government intervention, which reduces infectious cases.  The impact on the economy though of higher detected cases though is negative. 




37 11 months ago
A detailed description of all model input parameters is available  here . These are discussed further  here  and  here .  Update 29 June 2016 (v2.6): Added historical emplacement for wind and PV capacity. The maximum historical emplacement rates are then maintained from year 114/115 until the end of
A detailed description of all model input parameters is available here. These are discussed further here and here.

Update 29 June 2016 (v2.6): Added historical emplacement for wind and PV capacity. The maximum historical emplacement rates are then maintained from year 114/115 until the end of the model period. This acts as a base emplacement rate that is then augmented with the contribution made via the feedback control mechanism. Note that battery buffering commences only once the additional emplacement via the feedback controller kicks in. This means that there is a base capacity for both wind and PV for which no buffering is provided, slightly reducing the energy services required for wind and PV supplies, as well as associated costs. Contributions from biomass and nuclear have also been increased slightly, in line with the earlier intention that these should approximately double during the transition period. This leads to a modest reduction in the contributions required from wind and PV.

Added calculation of global mean conversion efficiency energy to services on primary energy basis. This involves making a compensation to the gross energy outputs for all thermal electricity generation sources. The reason for this is that standard EROI analysis methodology involves inclusion of energy inputs on a primary energy equivalent basis. In order to convert correctly between energy inputs and energy service inputs, the reference conversion efficiency must therefore be defined on a primary energy basis. Previously, this conversion was made on the basis of the mean conversion efficiency from final energy to energy services.

Update 14 December 2015 (v2.5): correction to net output basis LCOE calculation, to include actual self power demand for wind, PV and batteries in place of "2015 reference" values.

Update 20 November 2015 (v2.4): levelised O&M costs now added for wind & PV, so that complete (less transmission-related investments) LCOE for wind and PV is calculated, for both gross and net output.

Update 18 November 2015 (v2.3: development of capital cost estimates for wind, PV and battery buffering, adding levelised capital cost per unit net output, for comparison with levelised capital cost per unit gross output. Levelised capital cost estimate has been substantially refined, bringing this into line with standard practice for capital recovery calculation. Discount rate is user adjustable.

Default maximum autonomy periods reduced to 48 hours for wind and 72 hours for PV.

Update 22 October 2015 (v2.2): added ramped introduction of wind and PV buffering capacity. Wind and PV buffering ramps from zero to the maximum autonomy period as wind and PV generated electricity increases as a proportion of overall electricity supply. The threshold proportion for maximum autonomy period is user adjustable. Ramping uses interpolation based on an elliptical curve between zero and the threshold proportion, to avoid discontinuities that produce poor response shape in key variables.

Update 23 September 2015 (v2.1): added capital investment calculation and associated LCOE contribution for wind generation plant, PV generation plant and storage batteries.

**This version (v2.0) includes refined energy conversion efficiency estimates, increasing the global mean efficiency, but also reducing the aggressiveness of the self-demand learning curves for all sources. The basis for the conversion efficiencies, including all assumptions relating to specific types of work & heat used by the economy, is provided in this Excel spreadsheet.

Conversion of self power demand to energy services demand for each source is carried out via a reference global mean conversion efficiency, set as a user input using the global mean conversion efficiency calculated in the model at the time of transition commencement (taken to be the time for which all EROI parameter values are defined. A learning curve is applied to this value to account for future improvement in self power demand to services conversion efficiency.**

The original "standard run" version of the model is available here.
Model showing the effect of bank lending of deposited money as a multiplier in the creation of new money. Multiplier effect is shown as related to the bank reserve requirement on deposited funds.
Model showing the effect of bank lending of deposited money as a multiplier in the creation of new money. Multiplier effect is shown as related to the bank reserve requirement on deposited funds.
 Model in support of an article being written about Investment vs Austerity.  @ LinkedIn ,  Twitter ,  YouTube

Model in support of an article being written about Investment vs Austerity.

@LinkedInTwitterYouTube

 Model in support of an article being written about the relationship between investment and austerity. See  Version 2  See also: *  Inv vs Aust Sim [IM-2736]  *  Inv & Output 1 [IM-2740]  *  Inv & Output 2 [IM-2741]   @ LinkedIn ,  Twitter ,  YouTube

Model in support of an article being written about the relationship between investment and austerity. See Version 2

See also:
Inv vs Aust Sim [IM-2736]
Inv & Output 1 [IM-2740]
Inv & Output 2 [IM-2741]
The Cred System is an alternative to traditional currency that increases community resiliency and reduces participant's dependence on traditional dollars. This model is a basic description of the Cred System, involving four people and two loops. ​
The Cred System is an alternative to traditional currency that increases community resiliency and reduces participant's dependence on traditional dollars. This model is a basic description of the Cred System, involving four people and two loops.
  Sike Liu's model on COVID-19 & Burnie Economy       This model contains three parts, the first part stimulates the COVID-19 pandemic outbreak in Burnie; the second part describes possible government policies on pandemic control; and the third part examines the possible negative impact on econo
Sike Liu's model on COVID-19 & Burnie Economy

 

This model contains three parts, the first part stimulates the COVID-19 pandemic outbreak in Burnie; the second part describes possible government policies on pandemic control; and the third part examines the possible negative impact on economy growth from those policies.


Assumptions:

1. The state boarder has already been closed and all new arrivals in Burnie need to enter a fixed period of quarantine. And the quarantine rate measures the strength of the government policy on quarantine (such as length and method).

2. Patient zero refers to the initial number of undetected virus carriers in the community.

3. Government policies such as social distancing, compulsory mask and lock down could effectively reduce community’s exposure to the virus.

4. Social distancing and compulsory mask will be triggered when COVID-19 cases reach and beyond 10 and lock down will be triggered when cases reach and beyond 1000.

4. High vaccine rate, on the other hand, could effectively reduce the exposed people’s chance of getting infected.

5. Only when vaccine rate reaches 0.6 and beyond, then the spread of COVID-19 will be significantly slowed.

6. Vaccine can’t 100% prevent the infection of the virus.

7.The infected people will need to be tested so that they could be counted as COVID-19 cases and the test rate decides the percentage of infected people being tested.

8. After people recover, there are chances of them losing immunity and the immunity lost rate measures that.

9. The COVID-19 cases could also be detected at quarantine facilities, and the quarantine process will effectively reduce the Infection and exposure rate.

10. Social distancing and compulsory mask wearing are considered as light restrictions in this model and will have less impact on both supply and demand side, and lockdown is considered as heavy restriction which will have strong negative impact on economy growth in this model.

11. In this model, light restrictions will have more negative impacts on the demand side compared to the supply side.

12. In this model, both supply side and demand side will power the economy growth.

 

Interest hints:

The vaccine could significantly reduce the spread of COVID-19 and effectively reduce the number of COVID-19 cases.

The number of the COVID-19 cases will eventually be stabilized when the number of susceptible is running out in a community (reached community immunity).

Quarantine could slightly reduce the cases numbers, but the most effective way is to reduce the number of new arrivals.

11 months ago
Microeconomic measures can produce counterintuitive
'emergent' effects at the macro or systemic level. The commendable act of
saving money by individuals during uncertain economic times has the perverse macroeconomic
effect of making a recession  worse: in aggregate there will be less money availabl
Microeconomic measures can produce counterintuitive 'emergent' effects at the macro or systemic level. The commendable act of saving money by individuals during uncertain economic times has the perverse macroeconomic effect of making a recession  worse: in aggregate there will be less money available for spending, suppressing demand for goods and services. Economists call this effect 'the paradox of thrift'. Similarly, logical efforts by companies in such conditions to reduce their wage bill or their postponement of investment decisions will reduce spending in the economy  and deepen the economic downturn.

What can be done to counteract this harmful dynamic? The missing spending can be replaced by government spending: governments have it within their power to effectively counter economic downturns!

To maintain economic wealth (roads, hospitals, power
lines, etc.) power needs to be consumed. The same applies to economic activity,
since any activity requires the consumption of energy. According to the Environmental Protection Agency, the burning
of fossil fuels was responsible for 79 percent of
To maintain economic wealth (roads, hospitals, power lines, etc.) power needs to be consumed. The same applies to economic activity, since any activity requires the consumption of energy. According to the Environmental Protection Agency, the burning of fossil fuels was responsible for 79 percent of U.S. greenhouse gas emissions in 2010. So whilst economic activity takes place fossil fuels will be burned and CO2 emissions are unavoidable - unless we use exclusively renewable energy resources, which is not likely to occur very soon. However, the increasing CO2 concentrations in the atmosphere will have negative consequences, such droughts, floods, crop failures, etc. These effects represent limits to economic growth. The CLD illustrates some of the more prominent negative feedback loops that act as a break on economic growth and wealth.  As the negative feedback loops (B1-B4) get stronger, an interesting question is, 'will a sharp reduction in economic wealth and unavoidable recession lead to wide-spread food riots and disturbances?'